Smokey the Bear Influences the Market

By: Angela Agostinone / May 25, 2016

Yesterday, WTI crude closed up $0.54/bbl to $48.62, RBOB closed up $0.0088/gal to $1.6544, and HO finished up $0.0112/gal to $1.4887.  Prices were up yesterday due to an expected draw on crude inventories because of the Canadian Wildfires last week.  The API statistics confirmed those expectations with a crude draw of 5.1 million barrels. Also, Cushing, OK had its first draw in four weeks of 189,000 barrels.  The APIs showed that distillates drew 2.9 million barrels, and gasoline built 3.6 million barrels. WTI crude and HO have been trading up this morning, while RBOB is slightly in the red. The Canadian wildfires were the main cause of the draws last week. Athabasca Oil Corp. estimates production will resume and no long term impacts will happen.

Along with the Canadian wildfires, issues in Nigeria, Venezuela and France have also provided support for the increase in oil prices.  The chart below shows the price of crude since 1970 and how prices have reacted to major world events.

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The DOE statistics released today at 10:30 a.m. ET showed:

Crude: -4.2 million barrels; Cushing: -649,000 barrels

Distillates: -1.3 million barrels

Gasoline: +2.0 million barrels

Since the release of the statistics, WTI and HO continue to trade up but has slowly been coming off while RBOB remains trading down.

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Categories: Daily Market Update


Angela Agostinone

Written by

Angela Agostinone

Angela manages daily price changes from suppliers to ensure Guttman Energy customers are getting the most current and competitive rack prices. She is also responsible for relaying supplier product allocations to Guttman Energy's sales and logistics team, as well as analyzing specific benchmarks such as OPIS, Platts, and Argus to ensure each customer is getting the greatest value from their contracted fuel purchases.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


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